DOJ letter JAJones - North Carolina General Assembly by huangyuarong


									                                    State of North Carolina
ROY COOPER                                Department of Justice
                                            P.O. BOX 629
                                        RALEIGH, NC 27602-0629

                                             April 26, 2004

       North Carolina Senate President Pro Tempore Marc Basnight
       North Carolina House of Representatives Speaker James Black
       North Carolina House of Representatives Speaker Richard T. Morgan Co-Chairs, Joint
       Legislative Commission on Governmental Affairs

       Senator Scott Thomas
       Representative Bill Culpepper
       Representative Joe L. Kiser
       Co-Chairs, Appropriations Subcommittee on Justice and Public Safety

       North Carolina General Assembly
       Raleigh, North Carolina 27601-1096

              Re:     N.C.G.S. § 114-2.5; Report on Settlement Agreement in Favor of the
                      State; In The Matter of J.A. Jones Construction Company, Successor To
                      Metric Constructors, Inc., Fireman's Fund Insurance Company, Bonitz
                      Manufacturing Company, Inc., Bonitz Contracting Company, Inc.,
                      National Fire Insurance Company of Hartford, Real Brick Products, Inc.
                      and U.S. Brick, Inc.


               N.C.G.S. § 114-2.5 requires that not less than thirty (30) days prior to disbursement
       of funds received by the State or State agency pursuant to a settlement agreement or final
       orders of judgment of the case where the amount of funds exceed $75,000, the Attorney
       General shall report to the Joint Committee on Governmental Operations and the Chairs of
       the Appropriations Subcommittees on Justice and Public Safety on the payments received by
       the State. Pursuant to that statute, I am writing to report as follows:

              On July 19, 1996, the State of North Carolina, acting through the University of North
       Carolina at Charlotte, hired J .A. Jones Construction Company as the general prime
       contractor for the J. Murrey Atkins Library Expansion at UNCC, Project # 6094260301A.
       Fireman's Fund provided payment and performance bonds for Jones. Bonitz Contracting
       Company, Inc. and Bonitz Manufacturing Company, Inc. were hired by Jones as
       subcontractors on the Project. The scope of the work included removing and replacing
Page 2

exterior brick cladding and installing windows. Bonitz hired Real Brick to supply the
materials for the brick cladding. Real Brick is owned by U.S. Brick. After the Project was
complete there were cracks in the brick system and bricks were falling off the building.
Water is also leaking in the building.

        Bonitz filed a law suit against Real Brick and U.S. Brick. Jones filed a law suit
against Bonitz alleging breach of contract, negligence, and breach of warranty.

        The State of North Carolina held $976,057.50 in retainage from Jones due to the
failed system. Jones filed a written verified claim with the State for $2,201,746.00 alleging
delays caused by a change in site conditions.

       In the Settlement Agreement Jones agreed to allow the State to keep the retainage.
Bonitz agreed to pay the State $800,000 and Real Brick agreed to pay the State $100,000.
The University of North Carolina at Charlotte will receive the settlement proceeds.

         We will be happy to respond to any additional questions you may have in regard to
this settlement. Please feel free to contact me at (919)716-6400.


                                              Julia White
                                              Chief of Staff

cc:      Nels Roseland, Chief fiscal Officer, NC DOJ
         Chloe Gossage, Fiscal Research Division, NCGA
         Greg McLeod, Legislative Counsel, NC DOJ

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